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Admiral101 posted:But yeah, $1,300 sounds about right for self employment tax on $12,000 of what's mostly profit. Do you have any other income besides that 12000? That's all I made. Can I contribute to an IRA or something to bring my owed taxes to zero?
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Feb 13, 2012 02:58
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quote:That's all I made. No. IRA contributions have no effect on your self employment earnings, and therefore no effect on your self employment tax. IRAs only affect income tax. I can't imagine a legal way for your tax liability to be zero. You earned income in 2011, you will pay tax on this income. Admiral101 fucked around with this message at 04:14 on Feb 13, 2012 |
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Feb 13, 2012 04:08
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My apologies for furushotakeru for abusing the free advice rather than have you do our taxes, but we opted to just take the hit we think we're going to take and write it off to under withholding. So I'm re-doing my W-4 this year to prevent a tax bill for 2012. I owe the feds $354 this year. For my previous W-4, I had only 1 allowance for myself. I think that might be it, the cause of under-withholding. I'm re-doing my current W-4. By going through the W-4 I put 0 allowances and $49 withholding per paycheck for 23 remaining pay periods. Our highest paying job is $65k on the nose, lowest is in the low $50k range. Is this enough info? Am I doing this correctly?
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Feb 13, 2012 17:09
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MJP posted:My apologies for furushotakeru for abusing the free advice rather than have you do our taxes, but we opted to just take the hit we think we're going to take and write it off to under withholding. Are you married? What's your partners W-4 look like? Your W-4 should have been just fine. Honestly I wouldn't stress about a 354 dollar tax bill, I rather have the extra cash through the year than get a refund.
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Feb 13, 2012 17:38
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Married filing jointly, my bad. We do own a home and had around $10,300 of mortgage interest - while a $354 bill isn't terrible per se, I'd rather have an expectation that I don't owe much if anything at the end of the year and just have it taken out of our income.
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Feb 13, 2012 18:34
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On my W-2 in box '14-Other' I have 'GIFTC 1243.18', which was for 350 dollars in visa gift cards I'd received from work. Is that normal for poo poo like this?
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Feb 14, 2012 03:30
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Marman1209 posted:On my W-2 in box '14-Other' I have 'GIFTC 1243.18', which was for 350 dollars in visa gift cards I'd received from work. poo poo like what? That's taxable compensation, why wouldn't you pay tax on it?
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Feb 14, 2012 03:32
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AbbiTheDog posted:poo poo like what? That's taxable compensation, why wouldn't you pay tax on it? Being reported as $1243 instead of $350.
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Feb 14, 2012 03:35
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Marman1209 posted:Being reported as $1243 instead of $350. You might have gotten other items. Company car, other freebies/swag, etc. Check with HR on that.
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Feb 14, 2012 03:40
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My mother-in-law received a 1099-S form for the sale of her house. She's appears to meet the exceptions for having to pay tax on the sale. Does she still need to file a tax return? She has no other income, hasn't filed a return in 40+ years and is a dependent on my return. IRS seems to say yes. (bullet #4)
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Feb 14, 2012 20:41
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FCKGW posted:My mother-in-law received a 1099-S form for the sale of her house. She's appears to meet the exceptions for having to pay tax on the sale. Does she still need to file a tax return? She has no other income, hasn't filed a return in 40+ years and is a dependent on my return. Technically it's a "no." However, some of our clients that have sold their homes have gotten IRS matching notices. Once we send them a letter, it gets cleared up, but it's still a hassle. I'd recommend filing a return showing zero gain or loss just to make the IRS computers happy.
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Feb 15, 2012 00:23
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I already filed my 2011 taxes and just got a 1099 showing $100 profit from a stock in 2011 that I forgot about. Should I bother to amend to pay tax on this? I'm in the 25% bracket. Also, I realized that I have had two prior jobs making very little income that I don't think I ever filed a return for. One was in 2004 making less than $4,000 and one was in 2005 making less than $10,000. I figure that any tax I owed was already witheld and if it was an issue I'd know about it alreadt, is this right?
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Feb 15, 2012 02:23
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Binary posted:I already filed my 2011 taxes and just got a 1099 showing $100 profit from a stock in 2011 that I forgot about. Should I bother to amend to pay tax on this? I'm in the 25% bracket. I would fix 2011. The IRS (depending on the year of purchase and sophistication of the computers for the new 1099-B form) usually only gets the gross proceeds and assumes it is all short-term capital gains, leading to a nasty CP2000 matching notice. For the prior years, if the IRS thinks you might owe money they usually send you letters to that effect.
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Feb 15, 2012 03:05
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Isn't he already beyond the three-year statute of limitations on audits for 2004 and 2005? Those returns should be closed.
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Feb 15, 2012 16:34
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entris posted:Isn't he already beyond the three-year statute of limitations on audits for 2004 and 2005? Those returns should be closed.
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Feb 15, 2012 16:53
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scribe jones posted:they can go back as far as they want for nonfilers, iirc. Statute doesn't start until you file. Edit: If the IRS computers think, based on the document they have gotten on your account (W-2s, 1099s, etc.) that you might owe taxes, eventually they lose patience and file a statutory return for you and make assumptions, and then leave it up to you to correct if necessary.
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Feb 15, 2012 17:30
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Oh right, duh.
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Feb 15, 2012 17:44
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Can't find anywhere better to mention this, but the IRS efiling system is apparently going slightly sideways right now, with the IRS website even mentioning that plenty of people are getting bogus messages about no info on file.
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Feb 15, 2012 19:16
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I don't know whether to be happy or sad that I'm getting a .25% combined refund. On the one hand, I had a nearly 13% refund last year so I'd say I did better on my W4. Although, I may need to reduce it as some key deductions will finish phasing out this year unless I get married.  I know it's my money, but of course when you get used to that nice February cash infusion and then you get bubkis it kind of puts a damper on things.
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Feb 16, 2012 04:22
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scribe jones posted:they can go back as far as they want for nonfilers, iirc. That is correct.
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Feb 16, 2012 04:44
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Here's a tough one: I live in Canada and sell ebooks through a website based in the US. I've registered in Canada as a sole proprietorship so I could obtain an EIN from the IRS, which I have done. I need this to file form W-8 in order to reduce the 30% witholdings I'd incur from living outside the US, as per a tax treaty between our countries. Now, I'm really worried that I will need to file US income tax in addition to Canadian income tax because when I called for my EIN, the guy said he was sending me an information package on how to file my taxes. Can anyone comment on this/offer advice? Do I need to do anything more with the IRS? Thanks.
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Feb 16, 2012 22:18
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Tenacious J posted:Here's a tough one: I live in Canada and sell ebooks through a website based in the US. I've registered in Canada as a sole proprietorship so I could obtain an EIN from the IRS, which I have done. I need this to file form W-8 in order to reduce the 30% witholdings I'd incur from living outside the US, as per a tax treaty between our countries. Amount if international taxation I do = zero. Furu might do some, but he seems busy for some reason.
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Feb 16, 2012 22:39
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Tenacious J posted:Here's a tough one: I live in Canada and sell ebooks through a website based in the US. I've registered in Canada as a sole proprietorship so I could obtain an EIN from the IRS, which I have done. I need this to file form W-8 in order to reduce the 30% witholdings I'd incur from living outside the US, as per a tax treaty between our countries. Depends on how the website is reporting your income. If they issue a 1099-MISC at the end of the year the IRS will probably look for a tax return at some point, but if they issue a 1042-S they probably will not.
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Feb 17, 2012 00:42
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Welp. I've been a bad freelance contractor and haven't put nearly enough money away to pay my self-employment tax for the year. I've deducted the business-related purchases I've made throughout the year, and the chances I can gather up the required amount before April 20 is pretty slim. What are my options?
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Feb 17, 2012 01:02
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furushotakeru posted:Depends on how the website is reporting your income. If they issue a 1099-MISC at the end of the year the IRS will probably look for a tax return at some point, but if they issue a 1042-S they probably will not. Thank you. Though your usage of "probably" worries me. Edit: I have decided that if there's a chance the IRS will expect something from me for filing the W-8, that I won't bother. So now I'm wondering if having obtained an EIN has put me in a similar situation. If I don't use my EIN on anything, can I just forget about it? Edit 2: I found this on the IRS website, and I believe that it means I have nothing to worry about. Can someone confirm? quote:Income that residents of Canada receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article VII (Business Profits) of the treaty. Under that provision, business profits are exempt from U.S. income tax unless the individual has a permanent establishment in the United States. If they have a permanent establishment in the United States, they are taxed on the profit attributable to the permanent establishment. Under Article V (Permanent Establishment), you may be considered to provide services through a permanent establishment in the United States even if you do not have a fixed place of business. Thank you so much - I realize this is a little bit out of line with this thread. Tenacious J fucked around with this message at 01:45 on Feb 17, 2012 |
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Feb 17, 2012 01:12
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CDOR Gemini posted:Welp. I've been a bad freelance contractor and haven't put nearly enough money away to pay my self-employment tax for the year. I've deducted the business-related purchases I've made throughout the year, and the chances I can gather up the required amount before April 20 is pretty slim. What are my options? Pay what you can by 4/17 and get on an installment plan for the rest. I generally suggest that you make your 1Q 2012 estimated payment your #1 priority with whatever funds you have available. No use making your 2011 debt smaller if it is just going to make you get behind on your 2012 ES payments and owe next year, etc.
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Feb 17, 2012 02:03
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furushotakeru posted:Pay what you can by 4/17 and get on an installment plan for the rest. Some of our clients who owe by 4/15 but can't pay do the following that I do not condone: Extend the return, gather money all summer, and pay the tax when you file the final return in October. They get to have all summer without the IRS breathing down your neck. Disclaimer - some would argue that you don't have a valid extension under this strategy, use at your own risk.
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Feb 17, 2012 03:45
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What the gently caress is with firefighters thinking they can deduct everything they buy all year no matter what it is  Is this universal, or am I just hitting a streak?
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Feb 17, 2012 03:47
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scribe jones posted:What the gently caress is with firefighters thinking they can deduct everything they buy all year no matter what it is Dunno abut that but I have yet to meet an attorney who doesnt refuse to believe that they can't write off their suits as an employee expense 
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Feb 17, 2012 04:24
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I'm not sure if this has been answered but I am a contract worker for a company and therefore have to file and pay my 2011 taxes by this april. I was curious as to the payment plan options for my federal taxes. I visited the IRS website but didn't really get too much helpful information. Anyone have any knowledge on the subject like minimum payments, interest charged, etc.
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Feb 17, 2012 05:09
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I was looking over my old tax returns for 2009 and 2010 to see if there were any student loan interest/tuition deductions I missed. I went to H&R block with my info and it appears that I deducted student loan interest for 2009 without taking into account tax free tution reimbursement I had received from my employer that year. I may actually owe a small amount based on the recalculations. I'm going back in next week with more documentation, is the tution reimbursement I forgot about going to screw me?
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Feb 17, 2012 05:16
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Tenacious J posted:Thank you. Though your usage of "probably" worries me. Based upon what you have told us you should not have to pay tax to the US.
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Feb 17, 2012 07:21
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SilkyP posted:I'm not sure if this has been answered but I am a contract worker for a company and therefore have to file and pay my 2011 taxes by this april. I was curious as to the payment plan options for my federal taxes. I visited the IRS website but didn't really get too much helpful information. Anyone have any knowledge on the subject like minimum payments, interest charged, etc. The short answer is that if you are self employed then you should have been making quarterly tax payments during 2011. If you did not do so then you will owe your entire tax liability by April 17th of this year.
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Feb 17, 2012 07:24
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seymore posted:Based upon what you have told us you should not have to pay tax to the US. Yes but the remaining question is does he have to file a US non resident income tax return to let the IRS know that he doesn't owe US income tax, and my answer was "depends but probably not"
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Feb 17, 2012 07:41
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Another IRA question: I read that you can take an IRA disbursement without penalty if it is used to cover medical expenses that are more than 7.5% of your AGI. I am married and file jointly. Is that 7.5% of my personal AGI, or of both my and my spouse's AGI?
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Feb 17, 2012 20:12
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coronaball posted:Another IRA question: I read that you can take an IRA disbursement without penalty if it is used to cover medical expenses that are more than 7.5% of your AGI. I am married and file jointly. Is that 7.5% of my personal AGI, or of both my and my spouse's AGI? 7.5% of the AGI on the joint return.
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Feb 17, 2012 20:51
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Hey furushotakeru, thanks again for this thread. I haven't needed tax advice in years, but somehow I knew this would be here. I hosed up last year, paid my taxes, but I think I forgot to actually eFile them. I can't imagine what my goddamn stupid thoughtprocess was. Anyway, I just got the letter a month ago or so, so I reprinted the 1040 and mailed it in. TaxACT wants money to let me see last years activity, and I'm not even sure it will tell me what last year's filing status was. Doesn't matter, whether I filed it or not, the IRS didn't have it. So, of course, they haven't processed the paper return yet, so my e-File for this year was rejected. Goddamn it. Briefly, is it worth calling the IRS and explaining all this, and trying to get them to fix the electronic records, so I can eFile this year? Or should I not bother and just send the paper and hope for the best next year (and wait much longer for my refund, of course!!  )
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Feb 17, 2012 21:10
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Small question here. I filed my taxes and recently received them. Federal was direct, but for some reason state sent me a check. I noticed that it had a watermark, and when i tilt it it says void. Is that to prevent photocopying of the check, or did they send me a void check by mistake?
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Feb 17, 2012 21:21
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Harminoff posted:to prevent photocopying of the check You got it. It's a pretty common practice.
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Feb 17, 2012 21:23
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pr0k posted:Hey furushotakeru, thanks again for this thread. I haven't needed tax advice in years, but somehow I knew this would be here. You're going to need to either mail your 2011 return in or pay someone to efile it for you. Professional preparers don't need AGI information from last year to efile.
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Feb 17, 2012 22:15
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